South Africa targets multibillion-rand pistachio industry

South Africa is aiming to develop a multibillion-rand pistachio sector, with ambitions to produce up to 60,000 tonnes annually and secure 5–8% of the global market within the next decade. The country could become one of the top six or seven producers worldwide.

The vision was outlined at a growers conference in Prieska, Northern Cape, hosted by Karoo Pistachios and primary funding partner Fedgroup. The event brought together stakeholders from across the agricultural and financial value chain to assess progress and plan expansion.

Climate and production conditions

Karoo Pistachios CEO David Muller said the country’s climate, particularly in the Karoo, is well-suited for pistachio production. Pistachios require very specific conditions, including desert heat, sufficient winter chill, low rainfall, and a reliable water supply, and only a handful of regions in the world meet these requirements.

"We’ve therefore been able to produce premium nuts that rival the best in the world in terms of quality, which makes this such a compelling and lucrative opportunity for the region,” he said.

Structured capital supports growth

Fedgroup partner Alternative Asset Management Warren Winchester described the group’s role as providing strategic, "patient" capital. "We have been on this journey with Karoo Pistachios for six years and have gained a solid understanding of the financial models and the broader opportunity.

"Our ‘patient capital’ approach has also been structured to align with orchard maturation cycles, seasonal variability and long-term asset value creation," he explained.

Challenges with traditional financing

Muller highlighted that traditional financing structures often do not align with the timelines and biological realities of perennial crops.

"If you try to grow within these constraints, unlocking an opportunity that should take five to 10 years can end up taking 40 to 50 and, quite frankly, many South African farmers simply don’t have that amount of time," he said.

Looking ahead, Muller said South Africa could become a leading global pistachio producer within 15–20 years, with a key focus on expanding cultivation to 2,000 hectares. Realising that potential requires coordinated expansion across land, growers, and structured capital, backed by integrated processing and export infrastructure.

"We aim to fast-track the sector’s development and position pistachios as a climate-resilient, export-driven growth engine for South Africa,” he said.